The Dollar Index (DXY) rose to a three- month high before the release of U.S. leading indicators and a regional manufacturing gauge today amid expectations the recovery in the world’s largest economy is gathering pace.
Minutes of the Federal Reserve’s last meeting showed several policy makers advocated varying the pace of bond purchases. The euro remained lower against the dollar before data that economists say will show the manufacturing and services industries shrank in the currency bloc. Australia’s dollar fell as Asian stocks declined, sapping demand for higher- yielding assets.
“Dollar strength is gradually gaining momentum,” said Marito Ueda, senior managing director in Tokyo at FX Prime Corp. (8711), a currency-margin company. “There are clearer signs of a U.S. economic recovery.”
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